10-7-13 4:00 PM EDT | Email Article

Mandalay Resources Corporation reports record gold and antimony production and record gold, antimony and silver sales for third quarter, 2013

Canada NewsWire

TORONTO, Oct. 7, 2013 /CNW/ - Mandalay Resources Corporation ("Mandalay" or the "Company") (TSX: MND) announced today its production and sales results for the third quarter of 2013.

Brad Mills, Chief Executive Officer of Mandalay, commented, "Mandalay continued its strong operating performance in the third quarter of 2013. Costerfield produced and sold record amounts of gold and antimony during the quarter. The higher production is due to greater tonnage mined and processed at excellent grades of both gold and antimony. Cerro Bayo has performed according to our expectations, given the disruptions associated with the fatality experienced in the quarter. Cerro Bayo delivered record silver sales, catching up on shipping delays experienced in the first quarter."

Mr. Mills continued, "Our operational performance over the first nine months of 2013 was extremely strong, with 12-57% growth in metals produced (depending on the metal) and 27-64% growth in metals sold. This performance, plus our operating commitments for the rest of the year, gives us confidence that full-year production will be at the upper end of our previously announced guidance of 20,000-25,000 ounces of gold and 2,800-3,000 tonnes of antimony from Costerfield and 16,000-21,000 ounces of gold and 2.8-3.1 million ounces of silver from Cerro Bayo."

"We expect Mandalay's organic growth to continue. As previously announced, capital development is occurring for the second access to the Delia NW vein at Cerro Bayo which is expected to lead to a production increase from the current 1,200 tonnes per day ("tpd") to approximately 1,400 tpd by the end of the first quarter of 2014. As well, the Company recently announced commencement of the development of the Cuffley lode at Costerfield, with initial production expected by the end of 2013.  With the continued good exploration results recently announced at both operations, we expect to grow reserves at Costerfield and approximately replace reserves at Cerro Bayo in the Company's end of 2013 reserves update."

Saleable production for the three months ended September 30, 2013:

  • The Company produced a record 14,442 ounces ("oz") saleable gold ("Au"), a record 966 tonnes ("t") saleable antimony ("Sb"), and 733,659 oz saleable silver ("Ag"), representing a total of 33,452 oz of saleable gold equivalent ("Au Eq.") production.
  • Saleable production at Costerfield (Australia) was a record 8,831 oz Au and a record 966 t Sb.
  • Saleable production at Cerro Bayo (Chile) was 5,611 oz Au and 733,659 oz Ag.

Saleable production for the nine months ended September 30, 2013:

  • The Company's saleable production totaled 38,123 oz Au, 2,470 t Sb and 2,266,995 oz Ag, representing a total of 94,138 oz Au Eq.  These are all records for the nine-month period relative to previous years, with Au production exceeding 2012 performance by 57%, Sb production exceeding 2012 by 46%, and Ag production exceeding 2012 by 12%.
  • Saleable production at Costerfield (Australia) was 21,913 oz Au and 2,470 t Sb, significantly greater than in the corresponding nine months of the previous year due to the continued success of the cemented rock fill stoping method at increasing mine output while decreasing dilution and increasing head grades, and due to incremental improvements in the plant that have allowed it to process at higher throughput rates while maintaining high recoveries.
  • Saleable production at Cerro Bayo (Chile) was 16,210 oz Au and 2,266,995 oz Ag, significantly greater than in the previous year due to the operation having reached its designed 1,200 tpd rate late in 2012 and approximately maintained it through the first nine months of 2013.

Table 1. Third Quarter and Nine Month Production for 2013 and 2012

           
MetalSource3 months to
30 September
2013
3 months to
30 September
2012
9 months to
30 September
2013
9 months to
30 September
2012
           
Gold (oz) Costerfield                    8,831 4,317 21,913 12,129
  Cerro Bayo 5,611 4,787 16,210 12,069
  Total14,442 9,104 38,123 24,198
Antimony (t) Costerfield 966 594 2,470 1,696
Silver (oz) Cerro Bayo 733,659 804,779 2,266,995 2,016,373
Average quarterly prices:          
Gold US$/oz   1,328 1,654    
Antimony US$/tonne   9,928 12,784    
Silver US$/oz   21.33 29.83    
Au Eq. (oz)1 Costerfield 16,053 8,906 39,768 25,536
  Cerro Bayo 17,399 19,300 54,370 48,867
  Total33,452 28,206 94,138 74,403

Quarterly Au Eq. oz produced is calculated by multiplying the saleable quantities of Au, Ag, and Sb in the period by the respective average market prices of the commodities in the period, adding the three amounts to get a "total contained value based on market price", and then dividing that total contained value by the average market price of Au in the period.  Average Au price in the period is calculated as the average of the daily LME PM fixes in the period, with price on weekend days and holidays taken of the last business day; average Sb price in the period is calculated as the average of the daily average of the high and low Rotterdam warehouse prices for all days in the period, with price on weekend days and holidays taken from the last business day; average Ag price in the period is calculated as the average of the daily London Broker's silver spot price for all days in the period, with price on weekend days and holidays taken from the last business day.  The source for all prices is www.metalbulletin.com

Sales for the three months ended September 30, 2013:

  • The Company sold 14,622 oz Au, 777 t Sb, and 973,107 oz Ag, representing a total of 36,071 oz Au Eq., all record amounts.
  • Costerfield sold 7,532 oz Au and 777 t Sb.
  • Cerro Bayo sold 7,090 oz Au and 973,107 oz Ag.

Sales for the nine months ended September 30, 2013:

  • The Company sold a total of 36,917 oz Au, 2,295 t Sb and 2,379,766 oz Ag, representing a total of 93,447 oz Au Eq.  These are all records for the nine-month period relative to previous years, with 2013 Au sales exceeding 2012 sales by 64% year-over-year, 2013 Sb sales exceeding 2012 sales by 45%, and 2013 Ag sales exceeding 2012 sales by 27%.
  • Sales from Costerfield were 20,263 oz Au and 2,295 t Sb, closely matching production.
  • Sales from Cerro Bayo were 16,654 oz Au and 2,379,766 oz Ag, closely matching production.

Table 2. Third Quarter and Nine Month Sales for 2013 and 2012

           
MetalSource3 months to
30 September
2013
3 months to
30 September
2012
9 months to
30 September
2013
9 months to
30 September
2012
           
Gold (oz) Costerfield 7,532                  3,896 20,263                11,343
  Cerro Bayo 7,090                  4,904 16,654                11,148
  Total14,622                  8,800 36,917                22,491
Antimony (t) Costerfield 777                     528 2,295                  1,586
Silver (oz) Cerro Bayo 973,107              803,810 2,379,766          1,875,235
Average quarterly prices:          
Gold US$/oz   1,328                  1,654    
Antimony US$/tonne   9,928                12,784    
Silver US$/oz   21.33                  29.83    
Au Eq. (oz)2 Costerfield 13,344                  7,980 36,818                23,907
  Cerro Bayo 22,727                19,400 56,629                45,278
  Total36,071               27,38093,447               69,185

2Quarterly Au Eq. oz sold is calculated by multiplying the saleable quantities of Au, Ag, and Sb in the period by the respective average market pricesof the commodities in the period, adding the three amounts to get a "total contained value based on market price", and then dividing that total contained value by the average market price of Au for the period.  Au Eq values for 2012 have been recalculated according to the above reporting policy. The source for all prices is www.metalbulletin.com with price on weekend days and holidays taken of the last business day.

About Mandalay Resources Corporation:

Mandalay Resources is a Canadian-based natural resource company with producing assets in Australia and producing and exploration projects in Chile. The Company is focused on executing a roll-up strategy, creating critical mass by aggregating advanced or in-production gold, copper, silver and antimony projects in Australia and the Americas to generate near-term cash flow and shareholder value.

Forward-Looking Statements:

This news release contains "forward-looking statements" within the meaning of applicable securities laws, including statements regarding the Company's production of gold, silver and antimony for the 2013 fiscal year. Readers are cautioned not to place undue reliance on forward-looking statements. Actual results and developments may differ materially from those contemplated by these statements depending on, among other things, changes in commodity prices and general market and economic conditions. The factors identified above are not intended to represent a complete list of the factors that could affect Mandalay. A description of additional risks that could result in actual results and developments differing from those contemplated by forward-looking statements in this news release can be found under the heading "Risk Factors" in Mandalay's annual information form dated March 27, 2013, a copy of which is available under Mandalay's profile at www.sedar.com. In addition, there can be no assurance that any inferred resources that are discovered as a result of additional drilling will ever be upgraded to proven or probable reserves. Although Mandalay has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.

SOURCE Mandalay Resources Corporation

Add a Comment

News   More...

Mandalay Resources Corporation Reports Strong Fourth Quarter and Record Full Year Production and Sales Results for 2013 and Reiterates 2014 Production Guidance (2014/1/16)
Lake Shore Gold Reports Lower Costs, Improved Grades and Higher Gold Sales in Third Quarter 2013 (2013/11/5)
Avnel Gold Mining Limited (AVK: TSX) Announces Third Quarter 2013 Results ()
J. B. Hunt Transport Services, Inc. Reports Record Revenues, Record Net Earnings and Record Earnings Per Share for Both the Fourth Quarter and Year Ended December 31, 2013 (2014/1/23)
Sabra Reports Third Quarter 2013 Results and Declares Quarterly Dividends; Completes $232.2 Million of Investments and Commits to Additional $66.3 Million; Significantly Reduces Exposure to Genesis; Reports Increased AFFO of 10% Over Third Quarter 2012; Updates 2013 Guidance ()
Mandalay Resources Corporation Increases Gold Reserves by 41% and Antimony Reserves by 108% in 2013 (2014/2/13)
Mandalay Resources Corporation completes purchase of Challacollo silver-gold project, files technical report, and begins 12 month feasibility study (2014/2/7)
Endeavour Silver Sets New Production Record in Third Quarter, 2013; Produces 1,855,846 oz Silver (Up 63%) and 22,947 oz Gold (Up 95%) ()
Mandalay Resources Corporation Announces Filing of Annual Information Form and Updated NI 43-101 Technical Reports for its Cerro Bayo and Costerfield Projects, Announces Annual General and Special Meeting Date (2014/3/28)
Mandalay Resources Corporation Announces Renewal of Normal Course Issuer Bid ()
Securities related to this article
Mondi Limited View mnd Stock Quote
Mandalay Resources Corporation View mnd Stock Quote
 
Start Premium Trial Register For Free

P F Fund Financial Data (13,000+ funds)
P F Stock Financial Data (7,000+ stocks)
P F Stock and Fund Screeners (basic)
P F Investing Articles and Market Commentary
P F Articles Archive (>30 days)
P F Discuss (dozens of stock, fund, bond, and general bulletin boards)
P F Portfolio Manager (basic)
P F Morningstar Investment Classroom
P F Access Your Portfolio Anytime, Anywhere via Your Mobile Device
P   Morningstar Fund Analyst Reports (full research on 1,700 funds, ETFs, and CEFs)
P   Morningstar Stock Analyst Reports (full research on more than 1,100 stocks)
P   Portfolio Manager (advanced with 10 X-Ray analyses, including recommendations)
P   Portfolio Monitor (monthly and on-demand personalized portfolio statements)
P   Morningstar Proprietary Stock Information (stock star ratings, buy/sell prices, economic moat ratings, and more)
P   Morningstar 5-Star Stock and Fund Favorites & Red Flags eNewsletters
P   Premium Stock and Fund Screeners (advanced with nearly infinite ways to find the best securities for you)
P   Discounts on Morningstar newsletters, books, seminars, and more

Sign-up to Morningstar


Basic Access

Articles and Videos
Morningstar video reports, articles, data, and tools. Dig into our lineup of e-newsletters and investing classroom courses outlining sensible strategies for maximizing your investments.
Morningstar Discuss
Follow the buzz on individual stocks or fund families. Plus, read the latest posts from Morningstar members and analysts.
Portfolio Manager
Track your investments and watch lists with our Portfolio Manager. Customize your view with our comprehensive stock, fund, and ETF data.

Access these features and more when you sign up for Free Membership.
Join Morningstar today. It's Free.

Unlimited Access

Analyst Research
Gather in-depth, actionable insight on over 3,700 stock and mutual funds covered by Morningstar analysts. View our mutual fund Analyst Reports favored by professionals, savvy experienced investors, and new investors researching options for retirement savings, college plans, or other investment needs.
Portfolio X-Ray®
Ensure your portfolio is positioned exactly how you want with Morningstar's X-Ray Interpreter and Stock Intersection tools. A Barron's "Best of the Web" award winner for five years running, X-Ray Interpreter goes under the hood of your portfolio to provide a useful allocation, sector, and geographic analysis. And you can discover how much of a stock you really own, individually and through mutual funds, with Stock Intersection.
Investment Picks
Find new 5-star stocks (greatly undervalued companies) to consider daily. Our 5-star stock rating is a proven winner, consistently beating benchmarks like the S&P 500. Plus, browse our Fund Analyst Picks and Stewardship Grades to find shareholder-friendly mutual funds that are poised for outperformance.
Portfolio Monitor
Get a clear view of your investments with personalized reports about your portfolio. Receive monthly statements and generate reports on-demand to help you stay on track to meet your investment goals.

Access these features and more when you sign up for Premium Membership.
Start your free 14-day trial today online
Your subscription may be tax deductible. Please contact your tax advisor.

Content Partners
Morningstar - 2013/10/7 - Mandalay Resources Corporation reports record gold and antimony production and record gold, antimony and silver sales for third quarter, 2013
Name |  Ticker |  Star Rating |  Market Cap |  Stock Type |  Sector |  Industry Star Rating |  Investment Style |  Total Assets |  Category |  Top Holdings |  Top Sectors |  Symbol |  Title Star Rating |  Category |  Total Assets |  Top Holdings |  Top Sectors |  Symbol |  Name Topic |  Sector |  Key Indicators |  User Interest |  Market Cap |  Industry Name |  Ticker |  Star Rating |  Market Cap |  Stock Type |  Sector |  Industry Star Rating |  Investment Style |  Total Assets |  Category |  Top Holdings |  Top Sectors |  Symbol / Ticker |  Title Star Rating |  Category |  Total Assets |  Symbol / Ticker |  Name Title |  Date |  Author |  Collection |  Popularity |  Interest Title |  Date |  Company |  Symbol |  Interest |  Popularity Title |  Date |  Company |  Symbol |  Interest |  Popularity Title |  Date |  Author |  Collection |  Interest |  Popularity

Previous: Mandalay Resources Corporation Increases Gold Reserves by 41% and Antimony Reserves by 108% in 2013  |  Next: Mandalay Resources Corporation Reports Strong Fourth Quarter and Record Full Year Production and Sales Results for 2013 and Reiterates 2014 Production Guidance